The court confirmed that the arbitration agreement met statutory requirements, leading to the appointment of an arbitrator to resolve disputes.

ORDER

This petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 [for brevity 'the Act'] for appointment of an Arbitrator to decide the dispute and differences between the petitioner and the respondents in terms of the Loan-cum-Hypothecation Agreement dated 12.07.2021.

2. When this petition came up for hearing on 04.07.2025, this Court passed the following order:

“This petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeking for appointment of an Arbitrator, by this Court.

2. There seems to be a dispute between the petitioner and the respondents arising out of the Loan cum Hypothecation Agreement, dated 12.07.2021. There exists an arbitration clause in the Loan cum Hypothecation Agreement, dated 12.07.2021 and the same is extracted hereunder :-

28. ARBITRATION :

All disputes, differences and / or claims arising out of this Agreement whether during its subsistence or there after shall be settled by arbitration in accordance with the provisions and the Arbitration and Conciliation Act, 1996 or any statutory amendments thereof and shall be referred to the Sole Arbitrator having office at Chennai Tamil Nadu nominated by the Company. The Borrower and Guarantor gives full consent for the Arbitration to be conducted at Chennai Tamilnadu by the Sole Arbitrator nominated by the company. It is also agreed between both the parties that the fee of the Arbitrator shall be equally shared by them. The award given by such Arbitrator shall be final and binding on all parties to this Agreement. In the event of an appointed arbitrator dying or being unable or unwilling to act as arbitrator for any reason, the Company on such death at the arbitrator or his inability or unwillingness to act as arbitrator, shall appoint another person to act as arbitrator. Such person shall be entitled to proceed with the reference from the stage left by his predecessor. The venue of arbitration proceedings shall be at Chennai or such other place/location/city which the Company at its discretion may decide from time to time.

3. The petitioner has invoked arbitration in accordance with the arbitration clause by issuing notice to the respondents on 05.09.2024 to comply with the requirement of Section 21 of the Arbitration and Conciliation Act, 1996. No reply has also received for the same. Since there is no consensus between the parties with regard to the name of the Arbitrator, this petition has been filed under Section 11 of the Arbitration and Conciliation Act, 1996 seeking for appointment of an Arbitrator.

4. Since there exists an arbitration clause in the contract, which is the subject matter of the dispute between the parties and since the petitioner has invoked arbitration by issuing notice to the respondents on 05.09.2024, this Court is issuing notice to the respondents, through Court as well as privately returnable by

28.07.2025.

5. Post the matter on 28.07.2025.

3. Pursuant to the above order, it was brought to the notice of this Court that the second respondent died and hence, an application was filed in A.No.493 of 2026 to implead the legal heirs of the deceased second respondent. This application was allowed on 09.02.2026 and notice was ordered to the impleaded respondents 3 and 4.

4. Private notice has been served on the first respondent. When the matter was taken up for hearing today, affidavit of service has been filed. It is seen that private notice sent to respondents 3 and 4 has been returned with an endorsement 'refused'. As the notice has been sent to the address mentioned in the application, there is a deemed service on the respondents 3 and 4. The name of the first respondent has been printed in the cause list. There is no appearance for respondents either in person or through pleader.

5. He